Loading ...The European Bank Holiday & Closure of Markets?
QUESTION: Dear Mr Armstrong!
About the bank holiday in Europe that may upcoming shortly, what´s your thought about people who hoarding the cash, will they lose all euro cash if the manager to introduce cbcd?
V
ANSWER: Something is not right. The liquidations are continuing. The panic to the dollar is being magnified by preventing shorting government bonds in Europe. They are creating an economic black hole. There is no way this virus warrants the shutting down of the world economy. This is becoming so destructive, it is beyond the intensity models we have run even on the Great Depression. This is starting to smell like deliberately creating panic to gain power.
Europe may close the banks because there are runs developing. Swap cash for dollars if you can. The risk in Europe is they simply cancel the currency. They do not need the USA or Asia to agree. The ECB has no power left because of the negative interest rates. This is the move to try to do Euro bonds now. But they are destroying the capital markets.
We may see this Panic continue into the week of the 23rd as =
Our Energy Models are making new highs and will probably peak this week. They appear to be reaching perhaps new record highs which reflects the massive amount of liquidation going on. The losses in the hedge funds, Relative Value funds, correlation desks are off the charts. It may exceed $100 billion minimum.
Price-wise, we may be looking at a cycle inversion whereby the failure to rally and close above 21600 on the Dow warns that the market may just decline into Monday 23rd. Doing so raises the risk of closing the banks and the markets at least in Europe. We will monitor the markets and post on timing.